All Articles on Pensions & Benefits

Congressional Gridlock and the Future of Pensions
With a continuing focus on deficit reduction and tax reform, Congress is always looking for revenue raisers. And, over the last several years, Congress has set a clear pattern of using the retirement system to help finance unrelated legislation. What do these ongoing fiscal battles mean for the retirement system?

Sep 15, 2014

PBGC Issues Moratorium on 4062(e) Enforcement
The Pension Benefit Guarantee Corporation (PBGC) recently announced a six-month moratorium on its enforcement of ERISA section 4062(e). The moratorium, scheduled to last till the end of 2014, will be used to review the application of 4062(e).

Jul 28, 2014

Multiemployer Insurance Program Deficit Threatens PBGC's Solvency
The financial position for the single-employer insurance program has improved dramatically, according to the FY 2013 Projections Report, released Monday by the Pension Benefit Guaranty Corp. (PBGC). However, the financial position for the multiemployer insurance program has declined dramatically—which could also spell trouble for single-employer plans and for PBGC itself.

This Week in Corporate Finance: Slow Progress in April
The month of April has been a continuation of the narrative of a U.S. economy that is progressing, but at a pace where we see neither a quick drop in the unemployment rate or a spike up in the inflation rate. The stock market is staying near its recent highs, while the U.S. Treasury yield curve continues to flatten.

Pension and Benefits Interest-Rate Stabilization Approved
Congress has passed a massive appropriations bill that includes
an interest-rate stabilization provision supported by pensions and
benefits trade groups, including the Committee on Investment of
Employee Benefit Assets, or CIEBA. The stabilization
provision, however, contains several modifications, including
additional required information in the annual funding notice.

Jul 11, 2012

Pension Risk, Governance and CFO Liability
The last few years have not been kind to corporate defined benefit (DB) pension plans. With no immediate relief in sight, CFOs are bracing themselves for the worst. Unless sponsors take control by properly identifying, measuring and mitigating risks, underfunding and poor governance spell trouble for participants, shareholders and creditors. Big money is at stake, so getting it wrong will be expensive.

Jun 28, 2012

Design Trends in QDIAs
The rapid adoption of QDIA’s by plan sponsors and lessons learned from the 2008 financial crisis have prompted many changes to these ever-evolving investment vehicles and strategies. Many investment managers have sought to add asset classes to their allocations in an effort to reduce correlation between assets and combat volatility.

CFO Liability Alert: Pension Plans and Risk Management
CFOs increasingly are being asked to make pension-related funding decisions that
have the potential to materially and adversely affect plan
participants, shareholders and creditors. As a result, CFOs are
exposed to fiduciary liability, career risk and the economic
consequences of an outcome with enterprise impact.

Apr 10, 2012

CFTC Adopts CIEBA Recommendation to Better Protect Pension Assets
At
its January 11 meeting, the Commodity Futures Trading Commission voted 4
to 1 to approve new protections for customer collateral provided to a swaps
dealer. Although it adopted the legally separate but operationally commingled
(LSOC) model, the CFTC incorporated permitting full physical segregation
for swaps collateral as recommended by the Committee on Investment of Employee
Benefit Assets, or CIEBA, which represents more than 100 of the nation’s
largest pension funds.

Presenting the Big Picture to Investors
At November’s Annual Conference in Boston, AFP caught up with Jeff Johnson, CTP, CPA, treasurer and vice president, Investor Relations at Deluxe Corp. and a member of AFP’s Board of Directors, to get his thoughts on investor relations in corporate treasury.

DB Dilemma: Preferred Creditor Status
A bill winding its way through the Canadian parliament would bestow preferred creditor status on plan deficits. The idea is to give the plan members a priority position in the event of a bankruptcy.

SEC Issues Final Rules on Proxy Access
In a split vote, the Securities and Exchange Commission (SEC) issued its final rules on allowing shareholders to have access to a company's proxy materials. The new rules allow 'long-term significant shareholders' to nominate candidates for boards of directors and have those nominees appear on the proxy materials distributed to all shareholders by companies.